Mudit Enterprises, registered in the state of Maharashtra (Mumbai) is engaged in supply of various goods and services exclusviely to persons notified under section 51 of the CGST Act, 2017. Calculate the amount of TDS to

The tax at source (TDS) would be deducted @ 1% under CGST Act and 1% under SGST/UTGST Act or 2% under IGST Act as the case may be, of the payment made to the supplier where the total value of such supply, under a contract, exceeds ₹2,50,000 (excluding the amount of GST indicated in the invoice). Thus, individual supplies may be less than ₹2,50,000/-, but if the value of supply under a contract is more than ₹2,50,000/-, TDS will have to be deducted as per rates prescribed. Case I: Given contract value is inclusive of GST, therefore to calculate contract value for TDS purpose the same is calculated exclusive of GST (CGST and SGST) = 2,75,000 * 100/112 = 245535.71 or 245536 (rounded off) Since the total value of supply under the contract does not exceed ₹2,50,000, tax is not required to be deducted on amount of ₹55,000. Case II: The contract value exclusive of GST shall be: = 3,10,000 * 100/112 = 276785.71 or 2,76,786 (rounded off) Since the total value of supply under the contract exceed ₹2,50,000, tax is required to be deducted on ₹60,000 @1% under CGST Act and 1% under SGST Act because this is an intra-state transaction (i.e. place of supply and location of supplier is in the same State). Hence, TDS would be 1% of 60,000 = ₹600 (CGST) and ₹600 (SGST) Case III: The proviso to section 51 (1) of CGST Act, 2017 lays down that when the location of the supplier and the place of supply is in a State which is different from the State/ Union territory of registration of the recipient, there will be no TDS. Since the location of the supplier and the place of supply is Mumbai and the State of registration of the recipient is Delhi, no tax is liable to be deducted in the given case on amount of ₹1,20,000.